Aave Forecasts

When analyzing possible scenarios for AAVE, we can't ignore the features and characteristics of this unusual DeFi cryptocurrency, which in just a few months has become one of the most capitalized in the sector and one of the most sought-after by investors.
It was born in 2017 and today supports the largest cryptocurrency collateral lending network, allowing lenders to participate in pools and earn interest from borrowers. AAVE is the central control token in this process, which will become increasingly relevant as decentralized lending systems grow in scale.

Value is tied to usage

There's no doubt about it. AAVE is a token that owes its value primarily to a particular use. Shattering to some extent the theories of those who view cryptocurrencies as a useless bubble, AAVE shows that it has what it takes to provide its users with a useful service that can bypass classic banking schemes.
What the true visionaries of the cryptocurrency world foresaw years ago and what today finds concrete application in the very network of lenders and borrowers interacting through AAVE. As this unusual decentralized lending network develops, the economic importance of the AAVE token will only grow.

Also a management task

The token is also used to manage the entire protocol, between the proposals, votes and decisions that must be made to develop it, including the assets that will be included in support.
The more interesting it will be to have a say in the protocol, the more demand for this cryptocurrency may grow. This is another very interesting prospect that could hit AAVE and those who invested today hoping for future value growth.

Leader in its sector

We believe there is no doubt that AAVE is at the center of the blockchain lending industry and the use of this type of collateral. A leadership position that can only have very interesting prospects because it is in an industry that is still in its infancy today.
And which, in the future, could grow by leaps and bounds, making AAVE even more important (and even more attractive to investors). And all of this in a project that continues to formulate and meet the demand for non-traditional credit in markets parallel to the "official" ones.

Anti-inflationary

About 80 percent of the fees are used to eliminate AAVE and thus reduce the monetary base. This obviously has an anti-inflationary effect and causes the price of AAVE to rise higher and higher, making it much more attractive to those entering the market today who have only the advantage of holding it as they become holders of increasingly scarce currency.

Institutional

AAVE has also been selected by the Brazilian government as one of nine projects to support pilot projects for a digital public currency. In addition to the volumes that such an operation could generate online, it is also important to understand the status of this project at meaningful levels.

Poor correlation with bitcoin

Its particular structure, even more deflationary than Bitcoin's, will eventually allow for a largely parallel trend between BTC and AAVE. This means that AAVE could be an excellent cryptocurrency for portfolio diversification and thus risk sharing within an investment strategy.